According to the Industrial Policy Statement, 1980, the investment limit in tiny units was raised to Rs. ______ lakhs.
Show answer & explanation
Correct answer: B
Explanation
Correct Answer:
Option 2: 2 Lakhs
Explanation:
Under the Industrial Policy Statement of 1980, the investment limit for 'Tiny Units' was raised to ₹2 lakhs in order to promote small-scale and cottage industries. The objective of this measure was to provide incentives to small entrepreneurs and to enhance employment opportunities. This fostered industrial development in rural and backward regions. This policy strengthened self-reliance and decentralization, and played a pivotal role in the expansion of small industries.
Additional Facts:
Option 1: 1 Lakh was the previous limit.
Option 2: Correct Answer.
Option 3: 5 Lakhs is incorrect.
Option 4: 10 Lakhs is incorrect.
Potential Questions for Upcoming Exams:
Question: When was the New Industrial Policy introduced?
Answer: 1991
Question: What are the LPG reforms?
Answer: Liberalization, Privatization, Globalization
Question: What is the objective of small-scale industries?
Answer: Employment generation
Question: What is the primary foundation of industrial development?
Answer: Investment